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Case Study: The Hewlett-Packard and Compaq Merger | MBA Knowledge Base

Case Study: The Hewlett-Packard and Compaq Merger | MBA Knowledge Base | Case Studies | Scoop.it
The following is a brief description of the two companies: Hewlett-Packard (HP) It all began in the year 1938 when two electrical engineering graduates from

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Abey Francis's curator insight, April 7, 2013 11:49 PM

Carly Fiorina, who became the CEO of HP in the year 1999, had a key role to play in the merger that took place in 2001. She was the first woman to have taken over as CEO of such a big company and the first outsider too. She worked very efficiently as she travelled more than 250,000 miles in the first year as a CEO. Her basic aim was to modernize the culture of operation of HP. She laid great emphasis on the profitable sides of the business. This shows that she was very extravagant in her approach as a CEO. In spite of the growth in the market value of HP's share from 54.43 to 74.48 dollars, the company was still inefficient. This was because it could not meet the targets due to a failure of both company and industry. HP was forced to cut down on jobs and also be eluded from the privilege of having Price Water House Cooper's to take care of its audit. So, even the job of Fiorina was under threat. This meant that improvement in the internal strategies of the company was not going to be sufficient for the company's success. Ultimately, the company had to certainly plan out something different. So, it was decided that the company would be acquiring Compaq in a stock transaction whose net worth was 25 billion dollars. Initially, this merger was not planned. It started with a telephonic conversation between CEO HP, Fiorina and Chairman and CEO Compaq, Capellas. The idea behind the conversation was to discuss on a licensing agreement but it continued as a discussion on competitive strategy and finally a merger. It took two months for further studies and by September, 2001, the boards of the two companies approved of the merger. In spite of the decision coming from the CEO of HP, the merger was strongly opposed in the company. The two CEOs believed that the only way to fight the growing competition in terms of prices was to have a merger. But the investors and the other stakeholders thought that the company would never be able to have the loyalty of the Compaq customers, if products are sold with an HP logo on it. Other than this, there were questions on the synchronization of the organization's members with each other. This was because of the change in the organization culture as well. Even though these were supposed to serious problems with respect to the merger, the CEO of HP, Fiorina justified the same with the fact that the merger would remove one serious competitor in the over-supplied PC market of those days. She said that the market share of the company is bound to increase with the merger and also the working unit would double. (Hoopes, 2001)

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Case Study: Success Story of Exxon Mobil | MBA Knowledge Base

Case Study: Success Story of Exxon Mobil | MBA Knowledge Base | Case Studies | Scoop.it
Exxon Mobil Corporation (Exxon Mobil) is an integrated oil and gas company based in the US. It is engaged in exploration and production, refining, and marketing

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Abey Francis's curator insight, April 7, 2013 11:41 PM

Business Mergers can be either successful or a total failure. Just because a the merger cost a lot of money doesn’t mean that it will be a successful deal. One of the most successful mergers was the merger of Exxon Corporation and Mobil Corporation, the merger between two of Standard Oil’s offsprings. This merger is considered today one the the greatest business mergers of all-time according to many business websites. The merger of Exxon Corp. and Mobil Corp.was a once in a lifetime merger that caused a lot of good that many people in the U.S. With Exxon-Mobil and other large U.S. oil producers like Chevron and ConocoPhillips creating machines to extract oil.

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Case Study: Success Story of Exxon Mobil | MBA Knowledge Base

Case Study: Success Story of Exxon Mobil | MBA Knowledge Base | Case Studies | Scoop.it
Exxon Mobil Corporation (Exxon Mobil) is an integrated oil and gas company based in the US. It is engaged in exploration and production, refining, and marketing

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Abey Francis's curator insight, April 7, 2013 11:41 PM

Business Mergers can be either successful or a total failure. Just because a the merger cost a lot of money doesn’t mean that it will be a successful deal. One of the most successful mergers was the merger of Exxon Corporation and Mobil Corporation, the merger between two of Standard Oil’s offsprings. This merger is considered today one the the greatest business mergers of all-time according to many business websites. The merger of Exxon Corp. and Mobil Corp.was a once in a lifetime merger that caused a lot of good that many people in the U.S. With Exxon-Mobil and other large U.S. oil producers like Chevron and ConocoPhillips creating machines to extract oil.